Belgium risks being left empty-handed during its European presidency

Belgium just cannot manage to take a supported position on new European budget rules. Our country risks being left empty-handed during our European presidency, writes Flemish Budget Minister Matthias Diependaele in the newspaper De Tijd (tijd.be). “A new low in federal diplomacy.”

A discussion about the new budgetary rules for the European Member States has been raging on Luxemburgplein and Schumanplein in Brussels for months. This will reach its apotheosis during the Belgian presidency of the Council of the EU in the first half of next year, against a background of economic turmoil, international conflict and rising interest rates. The rules that should lead to responsible budgets are coming under increasing pressure.

After the banking crisis, which culminated in the Greek tragedy of 2010, the EU decided it was all hands on deck. The strengthened and expanded Stability and Growth Pact was to build the necessary safeguards into the budgetary system and further strengthen the Maastricht standards. Everyone agreed that we could not afford a repeat of the Greek scenario.

Unfortunately, memories are fleeting. Economic recovery, low interest rates and the EU’s lax monetary policy have led to a new European adage: “That gap in the budget appeared on its own and will disappear on its own.” Nothing could be further from the truth. Since the coronavirus crisis, we are in a different reality. Due to rising interest rates, government debt hangs over the Member States like a sword of Damocles. Countries such as Italy, and also Belgium, will thus be in the sights of international markets sooner or later.

The north-south divide

In Belgium, the north-south divide is crystallising as it always has. The political fault line through Europe runs straight through Belgium and through the party landscape. This week, Vooruit party chairman Conner Rousseau called for a less rigid budget framework to enable investments. It is clear to everyone that we must continue to invest, but if that is an excuse to make the wells even deeper, it is playing with future prosperity. Cutting its coat according to its cloth is not in the economic handbook of a socialist.

The positions of Flanders and Wallonia on responsible budgetary policy and safeguarding the prosperity of our citizens are also miles apart. Flanders looks to the north and advocates the responsible use of people’s money. Having our accounts in order is still always the best insurance against future crises and allows us to invest in the social challenges that lie ahead.

South of the Language border The language border between a Flemish and a French-speaking area was permanently established in the period from 1962 to 1963. The Brussels-Capital district, with 19 municipalities, became officially bilingual. The language border was not a Flemish invention. Since the beginning of the 20th century, French-speakers, and certainly the socialists, have strongly advocated for monolingual areas in Belgium. Today, Flemings want respect for the language border and the bilingual nature of Brussels. language border , they are loosening the budgetary reins. Instead of implementing the necessary reforms to safeguard our prosperity, the French speakers would rather advocate adjusting the European agreements themselves. The French speakers’ motto is “We have already been breaking the imposed rules for so long anyway, we might as well change them according to our non-policy.” 

I will spare you the technicalities of the European decision-making machine. For the time being, the European financial and budgetary position will be conveyed by my federal colleague. Many meetings are organised to reach a supported position with the federal states. That is where the shoe pinches again. The views, customs, economic realities and political constellations are so far apart that the conclusion is that Belgium has no position.

As a result, we do not have a strong voice with a clear view at the European table, and we resign ourselves to what the other Member States impose on us. This is in stark contrast to other smaller Member States that are fiercely vocal, such as the Netherlands and Denmark.

Be firm

The fact that we are silent as one of the 27 in the European club is already a sad sight. However, the fact that we are likely to be left empty-handed as President of the Council is a new low in federal diplomacy. Therefore, I am calling on my Flemish colleagues in the federal government to be firm and not drag Flanders into the Belgian quagmire.

The Walloon and Brussels position of budgetary laisser-faire has already permeated federal logic for some time. Not a single credible attempt was made during this legislature to put matters more or less in order. In Brussels and Wallonia, people no longer even keep up appearances. The longer the Flemish-Walloon divide continues, the greater the chance that Belgium will be in the sights of the international markets.

We are among the worst members of the EU. In any case, the Belgian party will end soon, either because the international markets will crash the party, or because we have organised our own race to the bottom. The fact that my Flemish colleagues in the federal government are not tightening the budget rules and going along with the short-sighted policies of our Walloon neighbours is incomprehensible and politically untenable. This shows once again that the Belgian model has run its course.